How your land rates are calculated

Overview

Your Council land rates are calculated based on the land valuation that is supplied to Council by the NSW Valuer General’s Office. Council receives updated land values each three years from the Valuer General. This land value disregards any developments on the land. The average land valuation in the Byron Shire rose by 37.5 per cent from 2016 to 2019.

Council successfully applied to the Independent Pricing and Regulatory Tribunal (IPART) to increase its total revenue generated by rates by 7.5 per cent per annum for four rating years commencing in 2017 to 18. The 2020 to 21 rating year is the final year in which this special variation applies.

The additional revenue generated by the increased rates will continue to be primarily spent on asset renewal and maintenance, particularly on the road network.

It is important to understand that the increase applies to our total permissible general rates income rather than being applied to individual properties.

Where do your rates go?

Where do your rates go? Infographic. Alternative text on page below image

For every $100 spent Council invests:

  • $5.00 to natural environment, planning and development 
  • $7.00 to parks, sports fields, beaches, and bush regeneration 
  • $2.00 to enforcement and environmental health 
  • $1.00 to administration and governance
  • $1.00 to emergency services
  • $4.00 to community services, libraries and child care
  • $15.00 to buildings and pools 
  • $9.00 to recycling and waste services 
  • $6.00 to water operators 
  • $6.00 to maintaining roads, bridges, footpaths and drains 
  • $36.00 to major road works and construction 
  • $8.00 to sewerage operations

For a comprehensive overview of our 2020 to 21 rates and charges please refer to our Revenue Policy including Fees and Charges adopted by Council on 30 July 2020. 

New updated land values

Your Council land rates are primarily determined by unimproved land valuations for example, disregards any development on the land, which are supplied to Council by the NSW Valuer General’s Office every three years.

Updated land valuations with a base date of July 2019 will be used for rating purposes in 2020 to 21.

An increase in total land valuations received from the Valuer General does not increase Council’s total permissible annual rates revenue, they simply redistribute the rate burden between individual properties based on that property’s change in comparison to others.

The two principles of rating/taxation are considered by Council in order to implement a fair and equitable rating structure;

  • Ability to pay principle – This principle assumes that there is a relationship between land values and the ability to pay rates.
  • The benefit principle – This is essentially a user pays principle and considers that all properties have access to Council provided services.

The average land valuation in the Byron Shire rose by 37.5 per cent between 2016 and 2019.

Generally, if your property’s land valuation increased by more than the shire average you will pay proportionally more rates than last year and if its land valuation was less than the shire average you may pay less. The overall permissible revenue increase will also affect the amount of rates you pay this year in comparison to the rates you paid last year.

More information about land valuations and their use by councils is available from the Property NSW website.

Calculating your rates

Your rates are calculated by multiplying the value of your land by the 'rate in the dollar’ which is determined by the category of your land. Each property in the Byron Shire falls into one of the following categories. 

Category  Number of Properties Rate in the Dollar Minimum Rate Average Rate Total Income
 Residential 13,776 0.1967 928 1,434 19,753,129

 Residential - Flood Prone

 28  0.1967  464  480  13,428
 Business 1,116  0.3275 928   2,992  3,338,907
 Business Byron Bay CBD 349  0.4616  928  6,502  2,270,664
 Mining 0  0.3275 928   0  0
 Farmland 539  0.1752  928  2,478  1,334,366
 Farmland - Flood Prone 2  0.1752  464  464  928
 Totals  15,810  n/a  n/a  1,690 26,711,422

To calculate your rate you multiply the value of your land by the ‘rate in the dollar’ that applies to your rating category.

For example: If your residential property has a land value of $500,000 the calculation is $500,000 x 0.001967 = $983.50.
Note that regardless of the land valuation, a minimum rate of $928.00 per year is payable.